EA Again Extends Bid for Take-Two - TheStreet

EA Again Extends Bid for Take-Two

The hostile, $2 billion offer is now on the table through July 18.
Author:
Publish date:

Electronic Arts

(ERTS)

has once again extended its $2 billion hostile bid for

Take-Two Interactive Software

(TTWO) - Get Report

.

EA said Tuesday it was extending its unsolicited conditional offer to acquire Take-Two by one month to July 18, the fourth time the company has altered the deadline. EA said the extension will allow the Federal Trade Commission review process to continue.

"Our offer price remains unchanged at $25.74 per share, which is a substantial premium to where Take-Two's stock was trading prior to our offer," said Owen Mahoney, Senior Vice President of EA Corporate Development.

Currently, Take-Two's stock is trading at $26.35, or about 2% above EA's offer. The company once again rejected the bid as too low, and said it was searching for other alternatives.

"The latest extension of EA's unsolicited, highly conditional tender offer does not alter the fact that their proposal still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares," said Take-Two Chairman Strauss Zelnick. "The board remains focused on the strategic process that began formally on April 30 to consider all alternatives to maximize value. We believe that these alternatives, which may include a business combination or remaining independent, will deliver greater value to stockholders than the current EA offer."

On Feb. 24, EA said it will offer $26 a share for Take-Two, a move that was rejected by the latter's management on the belief that the price significantly undervalued Take-Two. Take-Two management has since then tried to thwart a takeover by issuing additional shares. In response, EA dropped its bid to $25.74, where it now stands.